The Fifth Meeting of Pakistan Afghanistan Joint Committee on Business/Trade in Islamabad

As part of the CRSS ongoing Pakistan- Afghanistan track 1.5/II project Beyond Boundaries in partnership with WPSO, a meeting of Pakistan Afghanistan Joint Committee on Business/Trade was convened in Islamabad from March 12 to 15, 2017, inviting top business leaders from Afghanistan chambers and Pakistan chambers in a timely intervention to start a dialogue on the early restoration of bilateral and transit trade between the two countries which has been halted by the recent border closure. The Pak- Afghan border was abruptly closed on February 17, 2017, by the Government of Pakistan following a series of deadly attacks in the country that killed over 100 people and injured several hundreds.

The initiative was planned to foster better understanding and cooperation between the two neighbors, soothe bitter context and address the trust deficit between Afghanistan and Pakistan, and engagement through detailed discussion and dialogue on the impact and repercussions on transit and bilateral trade due to the recent border closure. The visit also included high level sideline meetings and media interviews of selected delegates from Afghan and Pakistan side.

A six-member Afghan delegation arrived from Kabul on March 12 comprising five representatives from the Afghanistan Chamber of Commerce & Industry (ACCI) while one, Mr. Ahmad Shah Yarzada, from Afghan chapter of Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI). Members from ACCI were Mr. Mukhlis Ahmad Younas, Mr. Gulab Khan, Mr. Khalid Skanikzai, Mr. Mohammad Mustafa Baba Karkhel and Ms. Humira Saqib from WPSO. A six member delegation from Pakistan comprising representatives from Pakistan Afghanistan Joint Chamber of Commerce & Industry (PAJCCI) and the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) was invited to Islamabad to have a dialogue with the Afghan delegation to discuss the difficulties arising out of the abrupt closure of the border and reach a possible resolution. These included Mr. Muhammad Zubair Motiwala, President & Chairman PAJCCJ as head of the delegation, Mr. Junaid Esmail Makda, Director PAJCCI, Ms. Faiza, Executive Director PAJJCI, Mr. Aamer Ata Bajwa, Senior Vice President FPCCI, Mr. Mirza Ishtiaq Baig, Vice President FPCCI, and Mr. Ahmed Chinoy, Member FPCCI.

On Monday 13 March, 2017, the two business delegations held a one-day dialogue where they discussed the heavy losses incurred by the business communities of both countries since the recent closure of the Pak-Afghan border, particularly at Torkham and Chaman, and the way forward. The delegation noted that, currently, 3000 containers in Peshawar and 2000 containers near Chaman border are standing filled with cargo and unable to pass due to border closure. The group took note with grave concern that the border had been closed for 5 times during the short span of approximately 8 months since June 2016.

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Representatives from both countries unanimously agreed to call on the Government of Pakistan to immediately open the border for the clearance of stranded cargo from port to borders. Both sides reiterated the significance of national sanctity and security and supported all measures that respective Governments may take to ensure the same. However, they insisted that the same should not be continued at the beset of hurting the economic and social ties across the border through measures such as abrupt closure of the border for an indefinite period. Doing so, they emphasized, has resulted in not only massive monetary losses but also a fair trust deficit between the business chambers on each side. They also urged both governments to honor their commitments on bilateral and transit agreements.

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Mr. Muhammad Zubair Motiwala, President and Chairman of PAJCCI, was of the view that there should be a total segregation between the business and politics of the two countries, adding that there were no differences between the business communities of Pakistan and Afghanistan as both wished to do business with each other. Mr. Ishtiaq Baig, Vice President of FPCCI, stated that there were many misperceptions due to which the closing of the border was being linked with reduction in terrorism. Mixing the two has merely been creating more problems than resolving anything.

Mr. Ahmad Shah Yarzada, Director Afghan Chapter PAJCCI, affirmed on the behalf of the Afghan business community, that Afghan business men are entirely in favor of doing business with Pakistan since the two countries share the same religion, language and culture. However, the abrupt closing of the Pak-Afghan border by Pakistan leaves Afghanistan to look towards other countries for trade.

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The two delegations also discussed the possible formation of a joint committee comprising private sector and think tanks from both countries which should act as an advisory mechanism that both Governments should consult before taking drastic measures such as closure of border or revision of economic policies. This committee could act as an economic and confidence building catalyst to ensure further enhancement of bilateral trade, rejuvenate regional linkages and promote joint investments.

Members also further resolved to urge the Ministry of Commerce for a possible waiver of any applicable port charges, whether detention or demurrage, applied to Afghan consignments and containers which accrued from the closure of the border in a bid to limit the monetary losses of the business communities of both countries.

The dialogue ended with a unanimous joint declaration drafted by the two sides (attached below).

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The group’s visit also included high profile meetings on 13 and 14 March, 2017,  with Ambassador of Afghanistan. H.E. Omar Zakhilwal at Afghan Embassy on ; Director General Afghanistan Mansour Khan at the Ministry of Foreign Affairs; National Security Advisor Lt. Gen. Nasser Khan Janjua at the PM Secretariat; the Standing Committee on Commerce and Trade with Chairman Siraj Muhammad Khan and other members of committee at Pakistan Institute for Parliamentary Services (PIPS); Mr. Aftab Sherpao, Chairman Pakistan, Pak-Afghan Parliamentary Friendship Group, and Member of National Assembly from FATA Mr. Shahji Ali Afridi, and with the Minister of Commerce and Trade, Mr. Khurram Dastgir Khan at Ministry of Commerce, Pakistan Secretariat.

Business leaders from both delegations also participated in media interactions through TV talk shows at Khyber TV and Dawn TV to highlight and discuss the repercussions of border closure and to call for better cooperation and understanding between the two neighbors. Mr. Zubair Motiwala, Ms. Faiza, Mr. Ahmed Shah Yarzada, and Mr. Mustafa Babakerkhel participated at Mashriq TV show “Marraka”. While Zubair Motiwala and Ahmad Shah Yarzada again participated at Dawn TV show “Newsline”. Both TV shows were aired on Tuesday 14 March, 2017 (shows uploaded below).

Joint Declaration    Media Coverage    Pictures    tv-show-ii

SIDELINE MEETINGS